Tomatoes are an input in the production of ketchup, and ketchup and mustard are substitutes. An increase in the price of tomatoes will LOWER the total surplus in the market for mustard
Answer:
I used an excel spreadsheet to calculate this:
the least squares regression line:
y = a + bx
y = $2,937 + 3.96x
where y = total cash wash costs and x = rental returns
fixed costs = $2,937 per month
variable cost = $3.96 per car washed
Answer:
Cost of Goods Sold will contain 9,600 of the fixed manufacturing cost
Explanation:
actual fixed cost 12,000
Under absorption cost, the produced units will take the complete manufacturing cost
total manufacturing cost / produced units
12,000 / 1,500 units = 8
Then, we multiply by the amount of units sold to know how much of the manufacturing cost were recognize during the period
1,200 x 8 = 9,600
The rest, will be capitalized into inventory.
Answer:
E) Bright: No dominant strategy, Sparkle: Strategy 1
Explanation:
The payoff matrix above shows the profits associated with the strategic decisions of two oligopoly firms, Bright Company and Sparkle Company. The first entries in each cell show the profits to Bright and the second the profits to Sparkle. What are the dominant strategies for Bright and Sparkle, respectively?
Bright: No dominant strategy, Sparkle: Strategy 1
Answer:
$1,060.75
Explanation:
the yield to maturity of the second bond is to 4% semiannual or 8.16% effective annual rate.
so we have to calculate the quarterly interest rate that yields an effective annual rate of 8.16%:
0.0816 = (1 + i)⁴ - 1
1.0816 = (1 + i)⁴
⁴√1.0816 = ⁴√(1 + i)⁴
1.0198 = 1 + i
i = 0.019804 = 1.9804%
now we must discount the first bond using that effective interest rate:
PV of face value = $1,000 / (1 + 4%)²⁰ = $456.39
PV of first 20 coupon payments = $20 x 16.38304 (PV annuity factor, 1.9804%, 20 periods) = $327.66
now we must find the value of the last 20 coupon payments but at the end of year 5 = $25 x 16.38304 = $409.58. Then we calculate the PV = $409.58 / (1 + 4%)¹⁰ = $276.70
the bond's current market value = $456.39 + $327.66 + $276.70 = $1,060.75
